DBA Sempra

    SRE ·NYSE ·Gas & Other Services Combined ·Inc. in CA
    Other securities: SREA
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    OVERVIEW
    We are a holding company whose principal businesses are regulated utilities in California and Texas. Our businesses invest in and operate electric and gas utilities and other energy infrastructure that provide energy services to customers.
    Sempra was formed in 1998 through a business combination of Enova Corporation and Pacific Enterprises, the holding companies of our regulated public utilities in California: SDG&E, which began operations in 1881, and SoCalGas, which began operations in 1867. We have since expanded our regulated public utility presence into Texas through our 80.25% interest in Oncor and 50% interest in Sharyland Utilities. Sempra Infrastructure’s assets include investments in the U.S. and Mexico with a focus on LNG, energy networks and low carbon solutions.
    Business Strategy
    Sempra’s mission is to build America’s leading utility growth business. We are primarily focused on the largest economies in the U.S., California and Texas, where we are investing in regulated utilities with a view toward producing stable cash flows and improved earnings visibility. Our goal is to deliver safe, reliable and affordable energy to customers while increasing shareholder value.
    DESCRIPTION OF BUSINESS BY SEGMENT
    Sempra’s business activities are organized under the following reportable segments:
    ▪Sempra California
    ▪Sempra Texas Utilities
    ▪Sempra Infrastructure
    SDG&E and SoCalGas each have one reportable segment.
    2025 Form 10-K | 12
    Sempra California
    SDG&E
    SDG&E is a regulated public utility that provides electric services to a population of, at December 31, 2025, approximately 3.6 million and natural gas services to approximately 3.3 million of that population, covering an approximate 4,100 square mile service territory in Southern California that encompasses San Diego County and an adjacent portion of Orange County.
    SDG&E’s assets at December 31, 2025 covered the following territory:
    We describe SDG&E’s electric utility operations below. We describe SDG&E’s natural gas utility operations below in “Sempra California’s Natural Gas Utility Operations.” For a discussion of the risks and uncertainties facing SDG&E’s business, see “Part I – Item 1A. Risk Factors” and “Part II – Item 7. MD&A – Capital Resources and Liquidity – Sempra California.”
    Electric Transmission and Distribution System. Service to SDG&E’s customers is supported by its electric transmission and distribution system, which includes substations and overhead and underground lines. These electric facilities are primarily in the San Diego, Imperial and Orange counties of California and in Arizona and Nevada and consisted of 2,018 miles of transmission lines, 24,210 miles of distribution lines and 158 substations at December 31, 2025. Occasionally, various areas of the service territory require expansion to accommodate customer growth and maintain reliability and safety.
    SDG&E’s 500-kV Southwest Powerlink transmission line, which is shared with Arizona Public Service Company and Imperial Irrigation District, extends from Palo Verde, Arizona to San Diego, California. SDG&E’s share of the line is 1,163 MW, although it can be less under certain system conditions. SDG&E’s Sunrise Powerlink is a 500-kV transmission line constructed by SDG&E that extends across Southern California. Both of these lines are operated by the California ISO and together provide SDG&E with import capability of 3,900 MW of power.
    2025 Form 10-K | 13
    Mexico’s Baja California transmission system is connected to SDG&E’s system via two 230-kV interconnections with combined capacity of up to 600 MW in the north-to-south direction and 800 MW in the south-to-north direction. However, it can be less under certain system conditions.
    SDG&E’s system is connected to Edison’s transmission system via five 230-kV transmission lines.
    Electric Resources. SDG&E supplies power from its own electric generation facilities and procures power on a long-term basis from other suppliers for resale through CPUC-approved PPAs or purchases on the spot market. SDG&E does not earn any return on commodity sales volumes. SDG&E’s electric resources at December 31, 2025 were as follows:
    ELECTRIC RESOURCES(1)
    Contract
    expiration date    		Net operating
     capacity (MW)    		% of total
    SDG&E:
    Owned generation facilities, natural gas(2)
    		1,217 26 %
    PPAs:
    Renewable energy:
    Wind2026 to 2042962 20 
    Solar2030 to 20431,546 32 
    Other2027 and thereafter30 1 
    Tolling and other2026 to 20421,023 21 
    Total4,778 100 %
    (1)    Excludes approximately 482 MW of energy storage owned and approximately 632 MW of energy storage contracted.
    (2)    SDG&E owns and operates four natural gas-fired power plants, three of which are in California and one is in Nevada.
    Charges under contracts with suppliers are based on the amount of energy received or are tolls based on available capacity. Tolling contracts are PPAs under which SDG&E provides natural gas to the energy supplier.
    SDG&E procures natural gas under short-term contracts for its owned generation facilities and for certain tolling contracts associated with PPAs. Purchases from various southwestern U.S. suppliers are primarily priced based on published monthly bid-week indices, which can be subject to volatility.
    SDG&E participates in the Western Systems Power Pool, which includes an electric-power and transmission-rate agreement that allows access to power trading with more than 300 member utilities, power agencies, energy brokers and power marketers throughout the U.S. and Canada. Participants can make power transactions on standardized terms, including market-based rates, preapproved by the FERC. Participation in the Western Systems Power Pool is intended to assist members in managing power delivery and price risk.
    Customers and Demand. SDG&E provides electric services through the generation, transmission and distribution of electricity to the following customer classes:
    ELECTRIC CUSTOMER METERS AND VOLUMES
    Customer meter count
    Volumes(1)
    (millions of kWh)
    December 31,Years ended December 31,
    2025

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    data from SEC XBRL filings. Values are as-reported; restatements supersede originals.

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    From 10-K filed 2026-02-26 (period ending 2025-12-31).

    ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
    OVERVIEW
    This combined MD&A includes the operational and financial results of the following three Registrants:
    ▪Sempra is a holding company whose principal businesses are regulated utilities in California and Texas. Our businesses invest in and operate electric and gas utilities and other energy infrastructure that provide energy services to customers.
    ▪SDG&E is a regulated public utility that provides electric service to San Diego and southern Orange counties and natural gas service to San Diego County.
    ▪SoCalGas is a regulated public natural gas distribution utility, serving customers throughout most of Southern California and part of central California.
    Sempra has the following three reportable segments which reflect how the CODM oversees operational and financial performance:
    ▪Sempra California
    ▪Sempra Texas Utilities
    ▪Sempra Infrastructure
    SDG&E and SoCalGas each have one reportable segment.
    Below are significant events, including major project updates, that affected our business in 2025 and may continue to affect our future results:
    ▪The 2025 Wildfire Legislation was signed into law and established, among other things, an $18 billion Continuation Account that would provide additional liquidity to reimburse catastrophic wildfire-related claims incurred by large California electric IOUs if the Wildfire Fund is depleted, and a multi-stakeholder task force, coordinated by the Wildfire Fund’s administrator, to prepare and submit to the California legislature and Governor of California on or before April 1, 2026, a report that evaluates and sets forth recommendations on new models to complement or replace the Wildfire Fund
    ▪The CPUC issued an FD for SDG&E’s and SoCalGas’ cost of capital for 2026 through 2028
    ▪The CPUC issued an FD in SDG&E’s 2024 GRC Track 2 request that authorizes partial recovery of SDG&E’s WMP costs
    ▪Oncor filed its 2025 comprehensive base rate review and expects to receive a final order from the PUCT in the first half of 2026
    ▪In June 2025, Texas House Bill 5247, which established the UTM, was signed into law and became effective
    ▪In September 2025, we entered into an agreement to sell 45% of our equity interest in SI Partners to the KKR Partners for an aggregate base purchase price of approximately $9.99 billion, subject to adjustments, and expect the sale to close in the second or third quarter of 2026, subject to closing conditions
    ▪In December 2025, we entered into an agreement to sell Ecogas for 9.0 billion Mexican pesos (approximately $500 million U.S. dollar-equivalent at December 31, 2025), subject to adjustments, and expect the sale to close in the second or third quarter of 2026, subject to closing conditions
    ▪We sold a 49.9% equity interest in the PA LNG Phase 2 project to Blackstone
    ▪SI Partners reached a positive FID on the PA LNG Phase 2 project and issued a full notice-to-proceed under Bechtel’s fixed-price EPC contract
    ▪We invested $12.6 billion in capital expenditures and investments
    2025 Form 10-K | 72
    RESULTS OF OPERATIONS BY REGISTRANT
    Throughout this MD&A, our references to earnings represent earnings attributable to common shares. Variance amounts presented are the after-tax earnings impact (based on applicable statutory tax rates unless otherwise noted) and after NCI but before foreign currency and inflation effects, where applicable.
    We discuss herein Sempra’s results of operations and significant changes in earnings, revenues and costs by segment, as well as Parent and other, for the year ended December 31, 2025 compared to the year ended December 31, 2024. For a discussion of our results of operations and significant changes in earnings, revenues and costs for the year ended December 31, 2024 compared to the year ended December 31, 2023, refer to “Part II – Item 7. MD&A – Results of Operations” in our 2024 annual report on Form 10-K filed with the SEC on February 25, 2025. We also discuss herein the impact of foreign currency and inflation rates on Sempra’s results of operations.

    RESULTS OF OPERATIONS
    RESULTS OF OPERATIONS
    (Dollars and shares in millions, except per share amounts)
    EARNINGS (LOSSES) BY SEGMENT
    (Dollars in millions)
     Years ended December 31,
     202520242023
    Sempra:
    Sempra California$1,428 $1,846 $1,747 
    Sempra Texas Utilities861 781 694 
    Sempra Infrastructure(160)911 877 
    Segment earnings attributable to common shares
    		2,129 3,538 3,318 
    Parent and other
    		(333)(721)(288)
    Earnings attributable to common shares$1,796 $2,817 $3,030 

    2025 Form 10-K | 73

    Sempra California
    Sempra California’s earnings are comprised of SDG&E and SoCalGas. Because changes in SDG&E’s and SoCalGas’ cost of natural gas and/or electricity are recovered in rates, changes in these costs are offset in the changes in revenues and therefore do not impact earnings, other than potential impacts related to the GCIM for SoCalGas that we describe below. In addition to the changes in cost or market prices, natural gas or electric revenues recorded during a period are impacted by the difference between customer billings and recorded or CPUC-authorized amounts. These differences are required to be balanced over time, resulting in over- and undercollected regulatory balancing accounts. We discuss balancing accounts and their effects further in Note 4 of the Notes to Consolidated Financial Statements.
    In 2025 compared to 2024, the decrease in earnings of $418 million (23%) was primarily due to:
    ▪$432 million charge in 2025 from regulatory disallowances related to 2019 through 2024 associated with the 2024 GRC Track 2 FD, which we discuss in Note 4 of the Notes to Consolidated Financial Statements
    ▪$159 million lower income tax benefits primarily from flow-through items, including gas repairs tax benefits, offset by impacts from the election to accelerate self-developed software deductions and the resolution of prior year income tax items
    ▪$63 million higher net interest expense
    ▪$25 million charge in 2025 from disallowed regulatory recovery of COVID-19 costs
    Offset by:
    ▪$148 million higher CPUC base operating margin, net of operating expenses including higher depreciation, $44 million lower authorized cost of capital and a $32 million charge from regulatory disallowances associated with the 2024 GRC Track 2 FD related to 2025
    ▪$89 million charge in 2024 for amounts relating to the FERC order finding that the TO5 adder refund provision has been triggered, requiring SDG&E to refund customers the California ISO adder retroactively from June 1, 2019
    ▪$15 million impairment in 2024 from disallowed capital costs in the 2024 GRC FD
    Sempra Texas Utilities
    In 2025 compared to 2024, the increase in earnings of $80 million (10%) was primarily due to higher equity earnings from Oncor Holdings driven by:
    ▪overall higher revenues primarily attributable to:
    ◦the establishment of the UTM
    ◦rate updates to reflect increases in invested capital
    ◦customer growth
    ◦higher annual energy efficiency program performance bonus
    Offset by:
    ▪higher interest expense and depreciation expense associated with increases in invested capital
    ▪higher O&M
    Sempra Infrastructure
    In 2025 compared to 2024, losses were $160 million compared to earnings of $911 million primarily due to:
    ▪$703 million income tax expense in 2025 as a result of management’s decision to classify SI Partners and Ecogas as held for sale, comprised of the following:
    ◦$693 million income tax expense to adjust deferred income tax liabilities primarily related to outside basis differences in our investment in SI Partners
    ◦$10 million income tax expense due to the recognition of a deferred tax liability on our outside basis difference in Ecogas
    ▪$445 million unfavorable impact from foreign currency and inflation effects on our monetary positions in Mexico, comprised of a $181 million unfavorable impact in 2025 compared to a $264 million favorable impact in 2024
    ▪$43 million lower income tax benefit primarily from outside basis differences and the remeasurement of certain deferred income taxes
    ▪$30 million unfavorable impact in interest expense from unrealized gains in 2024 on interest rate swaps related to the PA LNG Phase 1 project
    ▪$27 million unfavorable impact related to a customer’s early termination of firm transportation agreements, including interest expense
    2025 Form 10-K | 74
    ▪$21 million from TdM driven by lower volumes and lower power prices and unrealized losses in 2025 compared to unrealized gains in 2024 on commodity derivatives due to changes in power prices
    Offset by:
    ▪$52 million from asset and supply optimization driven by higher optimization of transport and storage contracts, higher LNG diversion fees and lower unrealized losses on commodity derivatives due to changes in natural gas prices
    ▪$38 million lower O&M in 2025 primarily from lower provisions for expected credit losses
    ▪$37 million lower depreciation expense as a result of management's decision to classify SI Partners and Ecogas as held for sale
    ▪$31 million higher revenues driven by satisfaction of performance obligations related to customer payments received in advance from a contract modification in December 2024 on an LNG storage and regasification agreement that ended in December 2025
    ▪$13 million higher net interest income primarily from a change in the fair value of the Support Agreement
    Parent and Other
    In 2025 compared to 2024, the decrease in losses of $388 million was primarily due to:
    ▪$252 million from $78 million income tax expense in 2025 compared to $330 million income tax expense in 2024 from changes to a valuation allowance against foreign tax credits that were carried forward from the implementation of the TCJA
    ▪$191 million net income tax benefit in 2025 from changes to a valuation allowance against certain tax credit carryforwards offset by changes in state income tax apportionment as a result of management’s decision to classify SI Partners as held for sale
    ▪$22 million income tax benefit in 2025 from the impacts of the OBBBA
    ▪$19 million higher net investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan
    ▪$15 million lower preferred dividends
    Offset by:
    ▪$92 million higher net interest expense
    ▪$16 million equity earnings in 2024 related to our investment in RBS Sempra Commodities LLP from the substantial dissolution of the partnership
    ▪$11 million preferred deemed dividends related to the redemption of series C preferred stock in 2025
    SIGNIFICANT CHANGES IN REVENUES AND COSTS
    The regulatory framework permits SDG&E and SoCalGas to recover certain program expenditures and other costs authorized by the CPUC (referred to as “refundable programs”), which may be subject to reviews for reasonableness.
    Utilities: Natural Gas Revenues and Cost of Natural Gas
    Our utilities revenues include natural gas revenues at Sempra California and Sempra Infrastructure, which includes Ecogas. Intercompany revenues are eliminated in Sempra’s Consolidated Statements of Operations.
    SDG&E and SoCalGas operate under a regulatory framework that permits the cost of natural gas purchased for core customers to be passed through to customers in rates substantially as incurred and without markup. The GCIM provides for SoCalGas to share in the savings and/or costs from buying natural gas for its core customers at prices below or above monthly market-based benchmarks. This mechanism permits full recovery of costs incurred when average purchase costs are within a price range around the benchmark price. Any higher costs incurred or savings realized outside this range are shared between SoCalGas and its core customers. We provide further discussion in Note 3 of the Notes to Consolidated Financial Statements.
    2025 Form 10-K | 75
    UTILITIES: NATURAL GAS REVENUES AND COST OF NATURAL GAS
    (Dollars in millions)
     Years ended December 31,
     202520242023
    Sempra:
    Natural gas revenues:  
    Sempra California$7,263 $7,083 $9,425 
    Sempra Infrastructure78 78 87 
    Segment totals7,341 7,161 9,512 
    Eliminations and adjustments
    		(22)(20)(17)
    Total$7,319 $7,141 $9,495 
    Cost of natural gas(1):
    		 
    Sempra California$1,264 $1,118 $3,747 
    Sempra Infrastructure25 22 8 
    Segment totals1,289 1,140 3,755 
    Eliminations and adjustments
    		(7)(8)(36)
    Total$1,282 $1,132 $3,719 
    (1)    Excludes depreciation and amortization, which are presented separately on Sempra’s Consolidated Statements of Operations.

    In 2025 compared to 2024, Sempra’s natural gas revenues increased by $178 million (2%) driven by Sempra California, which included:
    ▪$202 million higher CPUC-authorized base revenues, net of $40 million lower authorized cost of capital
    ▪$146 million increase in cost of natural gas sold, which we discuss below
    ▪$88 million higher revenues from incremental and balanced capital projects offset by lower authorized cost of capital
    ▪$18 million higher regulatory revenues associated with refundable programs, which are fully offset in O&M
    Offset by:
    ▪$166 million lower regulatory revenues primarily from the release of a regulatory liability in 2024 for gas repairs tax benefits as a result of the 2024 GRC FD
    ▪$57 million lower regulatory revenues associated with impacts from the election to accelerate self-developed software deductions, which are offset in income tax expense
    ▪$29 million lower revenues in 2025 from disallowed regulatory recovery of COVID-19 costs
    In 2025 compared to 2024, Sempra’s cost of natural gas increased by $150 million (13%) driven by Sempra California, which included:
    ▪$193 million higher average natural gas prices
    Offset by:
    ▪$47 million lower volumes driven by weather
    Utilities: Electric Revenues and Cost of Electric Fuel and Purchased Power
    Our utilities revenues include electric revenues at Sempra California, substantially all of which are at SDG&E. Intercompany revenues are eliminated in Sempra’s Consolidated Statements of Operations.
    SDG&E operates under a regulatory framework that permits it to recover the actual cost incurred to generate or procure electricity based on annual estimates of the cost of electricity supplied to customers. The differences in cost between estimates and actual are recovered or refunded in subsequent periods through rates.
    2025 Form 10-K | 76
    Utility cost of electric fuel and purchased power includes utility-owned generation, power purchased from third parties, and net power purchases and sales to/from the California ISO.
    UTILITIES: ELECTRIC REVENUES AND COST OF ELECTRIC FUEL AND PURCHASED POWER
    (Dollars in millions)
     Years ended December 31,
     202520242023
    Sempra:
    Electric revenues:
    Sempra California$4,555 $4,299 $4,336 
    Eliminations and adjustments(3)(3)(2)
    Total
    		$4,552 $4,296 $4,334 
    Cost of electric fuel and purchased power(1):
    Sempra California$448 $308 $445 
    Eliminations and adjustments(63)(63)(70)
    Total
    		$385 $245 $375 
    (1)    Excludes depreciation and amortization, which are presented separately on Sempra’s Consolidated Statements of Operations.

    In 2025 compared to 2024, Sempra’s electric revenues increased by $256 million (6%) driven by Sempra California, which included:
    ▪$140 million increase in cost of electric fuel and purchased power, which we discuss below
    ▪$94 million charge in 2024 for amounts relating to the FERC order finding that the TO5 adder refund provision has been triggered, requiring SDG&E to refund customers the California ISO adder retroactively from June 1, 2019
    ▪$80 million higher revenues from incremental and balanced capital projects offset by lower authorized cost of capital
    ▪$36 million higher CPUC-authorized base revenues, net of $20 million lower authorized cost of capital
    ▪$31 million higher revenues from transmission operations
    ▪$22 million higher revenues from a $17 million cost in 2025 compared to a $5 million credit in 2024 for the non-service components of net periodic benefit cost, which fully offsets in other income, net
    Offset by:
    ▪$115 million lower regulatory revenues from higher ITCs from standalone energy storage projects, which are offset in income tax expense
    ▪$23 million lower regulatory revenues associated with refundable programs, which are fully offset in O&M
    ▪$21 million lower regulatory revenues associated with impacts from the election to accelerate self-developed software deductions, which are offset in income tax expense
    In 2025 compared to 2024, Sempra’s cost of electric fuel and purchased power increased by $140 million driven by Sempra California, which included:
    ▪$151 million higher purchased power primarily due to changes in excess capacity sales and tolling agreements
    ▪$55 million lower sales to the California ISO due to lower market prices
    Offset by:
    ▪$62 million lower purchased power from the California ISO due to lower market prices and lower customer demand from departing load now served by CCAs
    2025 Form 10-K | 77
    Energy-Related Businesses: Revenues and Cost of Sales
    ENERGY-RELATED BUSINESSES: REVENUES AND COST OF SALES
    (Dollars in millions)
     Years ended December 31,
     202520242023
    Sempra:
    Revenues:   
    Sempra Infrastructure$1,887 $1,804 $2,984 
    Parent and other(1)
    		(56)(56)(93)
    Total$1,831 $1,748 $2,891 
    Cost of sales(2):
    		 
    Sempra Infrastructure$367 $380 $548 
    Total$367 $380 $548 
    (1)    Includes eliminations of intercompany activity.
    (2)    Excludes depreciation and amortization, which are presented separately on Sempra’s Consolidated Statements of Operations.

    In 2025 compared to 2024, Sempra’s revenues from energy-related businesses increased by $83 million (5%) primarily due to:
    ▪$63 million higher revenues driven by satisfaction of performance obligations related to customer payments received in advance from a contract modification in December 2024 on an LNG storage and regasification agreement that ended in December 2025
    ▪$59 million from asset and supply optimization from contracts to sell natural gas and LNG to third parties, including:
    ◦$54 million primarily from higher diversion fees due to higher natural gas prices
    ◦$36 million driven by higher natural gas prices and higher volumes associated with optimization of transport and storage contracts
    Offset by:
    ◦$31 million higher unrealized losses on commodity derivatives
    ▪$15 million higher revenues in 2025 due to the commencement of commercial operations at the Topolobampo marine terminal in June 2024
    Offset by:
    ▪$30 million lower transportation revenues driven by a customer’s early termination of firm transportation agreements
    ▪$14 million from TdM mainly due to lower volumes and lower power prices
    In 2025 compared to 2024, Sempra’s cost of sales from energy-related businesses decreased by $13 million (3%) primarily due to:
    ▪$27 million driven by lower LNG purchases offset by higher natural gas purchases related to asset and supply optimization
    Offset by:
    ▪$10 million higher purchased power due to higher power capacity sales
    Operation and Maintenance
    OPERATION AND MAINTENANCE
    (Dollars in millions)
     Years ended December 31,
     202520242023
    Sempra:
    Sempra California$4,315 $4,398 $4,591 
    Sempra Texas Utilities6 5 5 
    Sempra Infrastructure865 858 793 
    Segment totals5,186 5,261 5,389 
    Parent and other(1)
    		95 75 69 
    Total$5,281 $5,336 $5,458 
    (1)    Includes eliminations of intercompany activity.

    2025 Form 10-K | 78
    In 2025 compared to 2024, Sempra’s O&M decreased by $55 million (1%) primarily due to:
    ▪$83 million decrease at Sempra California due to:
    ◦$61 million lower non-refundable operating costs
    ◦$20 million impairment in 2024 from disallowed capital costs in the 2024 GRC FD
    ◦$5 million lower expenses associated with refundable programs, which costs are recovered in revenue
    Offset by:
    ▪$20 million increase at Parent and other primarily due to non-recoverable insurance claims in 2025
    ▪$7 million increase at Sempra Infrastructure due to:
    ◦$42 million primarily due to higher maintenance expenses and higher expenses in 2025 in advance of ECA LNG Phase 1 commencing commercial operations
    ◦$38 million higher development costs and certain non-capitalized expenses from projects under construction
    Offset by:
    ◦$73 million lower provisions for expected credit losses
    Regulatory Disallowances
    As we discuss in Note 4 of the Notes to Consolidated Financial Statements, the CPUC issued an FD in SDG&E’s 2024 GRC Track 2 request that disallowed recovery of certain WMP costs. In connection with the Track 2 FD, in the fourth quarter of 2025, SDG&E recorded a charge of $651 million ($464 million after tax), of which:
    ▪$605 million ($432 million after tax) relates to 2019 through 2024
    ▪$41 million ($28 million after tax) relates to the first nine months of 2025
    ▪$5 million ($4 million after tax) relates to the fourth quarter of 2025
    Depreciation and Amortization
    In 2025 compared to 2024, Sempra’s depreciation and amortization increased by $126 million (5%) to $2.6 billion primarily due to:
    ▪$199 million higher at Sempra California due to higher utility plant rate base
    Offset by:
    ▪$71 million lower at Sempra Infrastructure due to:
    ◦$81 million lower as a result of management's decision to classify SI Partners and Ecogas as held for sale
    Offset by:
    ◦$11 million higher due to the commencement of commercial operations at Gasoducto Rosarito pipeline expansion in December 2024 and Topolobampo marine terminal in June 2024
    Other Income, Net
    In 2025 compared to 2024, Sempra’s other income, net, increased by $33 million (24%) to $169 million primarily due to:
    ▪$26 million charge in 2024, comprised of $7 million of AFUDC equity and $19 million of net regulatory interest, relating to the FERC order finding that the TO5 adder refund provision has been triggered, requiring SDG&E to refund customers the California ISO adder retroactively from June 1, 2019
    ▪$25 million from $11 million gains in 2025 compared to $14 million losses in 2024 driven by foreign currency transactional effects primarily at Sempra Infrastructure
    ▪$17 million higher AFUDC equity primarily at Sempra Infrastructure
    ▪$16 million higher net investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan at Parent and other
    Offset by:
    ▪$41 million higher non-service components of net periodic benefit cost primarily at Sempra California
    ▪$7 million reduction in regulatory interest in 2025 from disallowed regulatory recovery of COVID-19 costs at Sempra California
    We provide further details of the components of other income, net, in Note 1 of the Notes to Consolidated Financial Statements.
    2025 Form 10-K | 79
    Interest Income
    In 2025 compared to 2024, Sempra’s interest income increased by $42 million to $103 million primarily due to:
    ▪$33 million higher interest from interest bearing cash accounts primarily at Sempra Infrastructure
    ▪$14 million change in the fair value of the Support Agreement at Sempra Infrastructure
    Interest Expense
    In 2025 compared to 2024, Sempra’s interest expense increased by $483 million (46%) to $1.5 billion primarily due to:
    ▪$271 million at Sempra Infrastructure from:
    ◦$241 million unfavorable impact in interest expense from interest rate swaps related to the PA LNG Phase 1 project comprised of:
    •$215 million from $3 million unrealized losses in 2025 compared to $212 million unrealized gains in 2024
    •$29 million settlement in 2024 from the termination of interest rate swaps
    ◦$17 million higher interest expense related to a customer’s early termination of firm transportation agreements
    ▪$134 million at Parent and other from higher debt balances from debt issuances offset by higher capitalization of interest expense in 2025 from projects under construction at Sempra Infrastructure
    ▪$78 million at Sempra California from higher debt balances from debt issuances
    Income Taxes
    INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES
    (Dollars in millions)
     Years ended December 31,
     202520242023
    Sempra:
    Income tax expense$701 $219 $490 
    Income from continuing operations before income taxes and equity earnings$1,169 $2,110 $2,627 
    Equity earnings, before income tax(1)
    		620 603 633 
    Pretax income$1,789 $2,713 $3,260 
    Effective income tax rate39 %8 %15 %
    (1)    We discuss how we recognize equity earnings in Note 5 of the Notes to Consolidated Financial Statements.
    We report as part of our pretax results the income or loss attributable to NCI. However, we do not record income taxes for a portion of this income or loss, as some of our entities with NCI are currently treated as partnerships for U.S. income tax purposes, and thus we are only liable for income taxes on the portion of the earnings that are allocated to us. Our pretax income, however, includes 100% of these entities. If our entities with NCI grow, and if we continue to invest in such entities, the impact on our ETR may become more significant.
    In 2025 compared to 2024, Sempra’s income tax expense increased by $482 million primarily due to:
    ▪$576 million from $240 million income tax expense in 2025 compared to $336 million income tax benefit in 2024 from foreign currency and inflation effects on our monetary positions in Mexico
    ▪

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    Holder Type ETF MF Position ($) % of holder Δ % of holder Holder AUM

    Next expected filings

    • ~2026-05-09 10-Q expected by 2026-05-14 (in 8 days)
    • ~2026-08-08 10-Q expected by 2026-08-13 (in 99 days)
    • ~2026-11-06 10-Q expected by 2026-11-11 (in 189 days)
    • ~2027-02-26 10-K expected by 2027-03-02 (in 301 days)

    Predicted from historical filing cadence; not an SEC commitment.

    Recent SEC filings

    • 2026-03-20 8-K Other Events; Financial Statements and Exhibits
    • 2026-03-17 8-K Other Events; Financial Statements and Exhibits
    • 2026-03-13 8-K Other Events; Financial Statements and Exhibits
    • 2026-02-26 10-K Annual Report
    • 2026-02-26 8-K Earnings Release; Financial Statements and Exhibits
    • 2025-12-19 8-K Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
    • 2025-11-17 8-K Other Events
    • 2025-11-05 10-Q Quarterly Report
    • 2025-11-05 8-K Earnings Release; Financial Statements and Exhibits
    • 2025-09-23 8-K Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
    • 2025-09-19 8-K Other Events
    • 2025-08-29 8-K Other Events; Financial Statements and Exhibits
    • 2025-08-07 10-Q Quarterly Report
    • 2025-08-07 8-K Earnings Release; Financial Statements and Exhibits
    • 2025-06-23 8-K Officer/Director Change